More Europe
October 13, 2011
Germany's finance minister called for the eurozone's 17 member states to adopt a common fiscal policy to complement their common currency and laid out several steps for resolving the escalating debt crisis.
"We need a fiscal union," Finance Minister Wolfgang Schäuble said during a meeting of the conservative Christian Democrats' party base in Berlin on Wednesday.
A fiscal union would require the eurozone countries to turn over more national sovereignty to Brussels, allowing European officials to make sure that the 17 member states respected agreed upon principles of budgetary discipline.
Given the current circumstances, private creditors would have to participate in relieving Greece's debt in order to provide Athens with a realistic chance at solving its structural problems, according to Schäuble.
"It's not acceptable that investors pocket more money and the taxpayers have to pay for write-offs," Schäuble said. "I do not see any way to avoid participation by private creditors."
Schäuble went on to say that the temporary 400-billion-euro ($551 billion) European bailout fund, the European Financial Stability Facility (EFSF), had to be strengthened as banks are recapitalized and the current treaties governing the EU are reformed to allow intervention by Brussels against those who violate fiscal rules.
Author: Spencer Kimball (AFP, dapd)
Editor: Andreas Illmer